factual

Is an Aplus franchisee allowed to use Marks not approved by the franchisor?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 6.1.2. Franchisee is permitted and required to use only the Marks approved by Franchisor to conduct the business granted pursuant to, and in compliance with, this Agreement and all applicable standards, specifications and operating procedures prescribed from time to time by Franchisor. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of Franchisor in and to the Marks. Franchisee's use of the Marks, and any goodwill created thereby, shall inure to the benefit of Franchisor. Franchisee shall not at any time acquire an ownership interest in the Marks by virtue of any use it may make of the Marks. This Agreement does not confer any goodwill, title or interest in the Marks to Franchisee. Franchisee shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, franchisees are explicitly prohibited from using any Marks that have not been approved by Aplus. The FDD states that franchisees are only permitted and required to use the Marks approved by Aplus to conduct business, ensuring compliance with the franchise agreement and all applicable standards and operating procedures.

The document emphasizes that any unauthorized use of the Marks by the franchisee constitutes a breach of the agreement and an infringement of Aplus's rights. This underscores the importance of adhering strictly to the approved Marks to avoid legal repercussions and maintain brand consistency.

Furthermore, the FDD clarifies that the franchisee's use of the Marks and any goodwill created through that use will ultimately benefit Aplus. Franchisees do not acquire any ownership interest in the Marks through their usage, reinforcing Aplus's exclusive ownership and control over its brand identity. This provision ensures that Aplus retains full authority over its trademarks and service marks, protecting its brand integrity and reputation.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.